Black Entrepreneurship Program: Black Entrepreneurship Loan Fund
$250,000.00
Loan
Description:
The Black Entrepreneurship Loan Fund is a partnership between the Government, Black-led business organizations, and several financial institutions. It will provide loans up to $250,000 to Black business owners and entrepreneurs across the country.
Loans can be used for:
1. Capital investments–equipment, leasehold improvements, property improvement, office equipment.
2. Working capital–inventory, payroll, lease payments, accounts management, rent, overhead costs.
3. Short-term receivable financing (i.e. financing to service a contact).
Comments on Funding:
Funding will take the form of loans of up to $250,000.
FACE can provide loans of up to $100,000. Loans above this amount will be risk shared with the Business Development Bank of Canada.
Alterna Savings and Vancity, under the microloan pilot program, offer loans between $10,000 and $25,000.
Continuous Intake
Eligibility:
Applicants must:
1. be start-ups and existing for-profit small businesses in Canada. Such businesses can be corporations or sole proprietors and for-profit social enterprises. Businesses must have a business plan, business registration and recent financial statements or financial projections for start-ups.
2. self-identify as Black or Black-led (majority ownership of >51% by Black Canadians);
3. be a legal resident of Canada: i.e. Canadian citizen or permanent resident, or conventional refugee (for microloans only), or a legal entity owned and controlled by a Canadian citizen or citizens; and
4. be a minimum of 18 years.
Not-for-profit organizations are not eligible for loans.
Application Steps:
Applicants must use the FACE loan portal, accessible at Federation of African Canadian Economics (FACE), will act as the electronic and initial intake process for interested applicants. Loan applicants will be able to submit and communicate with a FACE client relationship manager on the progress of their loan request.
Documentation Needed:
Applicants must submit the following documents with their application:
1. a detailed business plan;
2. up to date historical financial statements;
3. 2 to 3 years financial projections;
4. up to date T1 and T2 income tax returns with notice of assessments;
5. Personal Statement of Affairs (template available).
Other Things to Note:
The Federation of African Canadian Economics (FACE) is the legal entity designated to administer the government contribution to the loan fund. It is a federally incorporated not-for-profit created by a group of Black business support organizations (BBSO) from across Canada.
Link it with FACE’s Black Entrepreneurship Loan Fund: Micro Loan Pilot Program – there are additional details there.
The loan fund has started accepting applications on May 31, 2021.
About the author
Maurice
